‘India to lose if oil prices climb more’ 

‘India to lose if oil prices climb more’

What has happened?

India, along with other emerging economies like Turkey and the Philippines, will be a loser if the recent oil price rise continues, according to a Nomura report

Affecting net oil importers with weak economic fundamentals

The supply side-driven increase in crude oil prices is likely to spur a major differentiation in emerging markets’ performance, hurting large net oil importers with weak economic fundamentals, possibly by more than it benefits large net oil exporters

Worsening CAD

Every $10/barrel (bbl) rise in oil price would worsen the current account balance by 0.4% of GDP, increase inflation by 30-40 basis points (bps), hurt growth by 15 bps and worsen the fiscal balance by 0.1% of GDP

The winners

The clear cut winners from the rise in oil prices include exporters Saudi Arabia, Nigeria and Colombia